HMRC Time to Pay VAT and PAYE Scheme.

“We can't pay the VAT and PAYE that is due to HMRC.  What can we do?

We would suggest that you contact the HMRC first.  Have a look at the Business Payment Support Service pages

If you have had a time to pay deal (TTP) in the past they will still consider you for another TTP.  However it is common knowledge that the HMRC are looking to scale back their level of Time to Pay (TTP) Scheme as it does not look particularly fair to be cutting public services but not collecting tax owed.

A recently-published study by insolvency trade body R3 has shown that 29 per cent of industry experts believe that if such arrangements are cut back this will be the "most harmful" development to face small and firms in 2012.

But what if the HMRC does not accept a time to pay deal that you can afford and asks for faster repayment?

We would suggest that you contact us or a similar advisor to see if you can get a suitable Time to Pay deal in place. This would require some work on a statement of affairs and a financial forecast. It is possible that this may be acceptable to HMRC as some external professional advice has shown that the business is viable and can afford to repay the debts over a comfortable period.

If the company is still viable but HMRC doesn't accept any TTP offers then a company voluntary arrangement (CVA) is the best option. Although a formal insolvency tool it is a powerful way to restructure the business, the debts and buy a breathing space to recover from the cashflow shock.

"As of June 2011 HMRC are no longer publishing statistics on how many time to pay arrangements have been refused.  Although it is clear that there are fewer being agreed"

Visit this page our page on detailed CVA

Just need to fix a cashflow problem with say PAYE and VAT? See this page for help!